New Law Changes 2007-2008
2007 Wisconsin Act 59

• Beginning in 2009, each employer will pay unemployment taxes on the first $12,000 of wages paid to each employee annually. This “taxable wage base” will increase to $13,000 in 2011 and $14,000 in 2013.
• Decreased basic tax rates and increased the solvency tax rates by the same amount.
• Required employers with 25 or more employees to file wage and tax reports electronically.
• Required all employer agents and certain large employers to pay taxes electronically beginning with payments made in Jan., 2009. Employers required to pay electronically will be notified later this year.
• Allowed employers with at least $1,000 in first quarter taxes to defer payments. This goes into effect with the first quarter 2009 payment.
• Clarified the due date for wage and tax reports and payments. (See article below)

A plain language summary of the law changes is available at http://dwd.wisconsin.gov/uibola/plainlang2007.htm.

New Due Date Requirement

A recent law change requires that all quarterly contribution/wage reports and payments must be received by the Department on or before the due date. Any reports and/or payments received after the due date, even if post marked by the due date, will be subject to penalty and interest.

This change takes effect with the third quarter report and payment due Oct. 31, 2008. To ensure your report and payment are received on time and avoid any postal delays, we encourage filing and paying electronically.

For more information about electronic filing and payment options, see http://dwd.wisconsin.gov/ui/.

New Hire Reporting

Did you know that businesses are required by law to report every new employee within 20 days of hire? There are several available methods for reporting your new hires. You may choose the method of reporting that best suits your business.

For more information about your options and the program, see http://dwd.wisconsin.gov/uinh/

Deferral of 1st Quarter Tax Payment

Employers who elected to defer payment on their first quarter 2008 UI tax liability are reminded that at least 90% of the liability must be paid by the October 31, 2008 third quarter due date. In addition, all other tax liability, including third quarter 2008, must be paid in full.

Electronic Reporting

Due to a recent law change, quarterly reporting requirements will change for employers with 25 or more employees, beginning with reports filed for third quarter 2008.

Contribution Reports: Employers with 25 or more employees who prepare and file their own reports must file via QTWRS, our web-based reporting application http://uiqtwrs.wisconsin.gov.

Wage Reports: Employers with 25 or more employees who file their own reports must file electronically, via QTWRS or one of the other automated media reporting options described on our website http://dwd.wisconsin.gov/uiben/wagehome.htm.

Penalties: Failure to comply with these filing requirements will result in penalties of $25 for each Contribution Report filed on paper, and $15 per employee for Wage Reports filed on paper. The penalty for late filing of wage reports will be $50 for all employers beginning with the report for the 3rd quarter of 2008.

Plant Shutdowns

If you are planning a plant shutdown or a major layoff that affects 50 or more employees over Thanksgiving and/or Christmas/New Years weeks, we can arrange to take their applications for unemployment benefits early. By filing their claims early, your employees can avoid the busy signals we usually experience in holiday weeks.

To arrange a special time for your employees to apply for unemployment benefits, please contact Lara Meinholz by telephone at 608-232-0730, by fax at 608-260-2518 or by e-mail at lara.meinholz@dwd.wisconsin.gov.

If you have less than 50 employees, no special arrangements need to be made.

Labor Law Clinics

The Department of Workforce Development (DWD) has scheduled various Labor Law Clinics for Wisconsin area business leaders and employees. Labor Law Clinics are educational seminars focusing on topics chosen by local employers about Wisconsin’s laws.

Clinics are scheduled as follows:

October 23, 2008 – Fond du Lac
November 19, 2008 – Janesville
December 2, 2008 - Milwaukee

Registration for the clinic is required. A registration form is available from the DWD web site http://dwd.wisconsin.gov/laborlaw/ or by sending an email to laborlawclinic@dwd.wisconsin.gov. To receive notification of future clinic dates, an email subscription service is available through the web site at http://dwd.wisconsin.gov/laborlaw/maillists.

UIAC 2008 Public Hearings

Thursday, October 2, 2008
11:00 a.m. – 12:00 Noon (or until complete)

Spooner Agricultural Research Station
W6646 Hwy 70
Spooner, Wisconsin 54801

The purpose is to receive public comments on the unemployment program.

Issues to be addressed by the Council may include, among others:

• Unemployment benefit eligibility
• Who is an “employee” (versus “independent contractor”)
• Limits on unemployment benefits and programs for extended benefits
• Unique work arrangements, such as school, seasonal and temp employment
• Concerns of small employers
• Reporting quarterly wages and taxes electronically
• Funding of the unemployment program
• Confidentiality of unemployment information

Changes to our unemployment law, rules or policy to improve:

• Fairness in outcomes for employers and employees
• Quality of the claims, tax and appeal processes
• Efficiency in administering the program
• Compliance and deterring unemployment fraud
• Public understanding of the unemployment law

If you cannot attend a hearing, you may send your comments to:
Unemployment Insurance Advisory Council
c/o Chairperson Daniel J. LaRocque
P.O. Box 8942
Madison, WI 53708
Daniel.LaRocque@dwd.wisconsin.gov

For additional information regarding public hearings call Robin Gallagher at (608)267-1405.

For information regarding the activities of the Wisconsin Unemployment Advisory Council, visit dwd.wisconsin.gov/uibola/uiac

UCB-11618 (R. 9/2008)

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